2017 Edelman Trust Barometer - Financial Services Results
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This year, the Edelman Trust Barometer asked about the importance and performance of several behaviors regarding the financial services industry. The gaps shown in this graphic detail the divide in behaviors of financial services companies, including contributing to the greater good and effectively representing interests of all stakeholders. Explore the results for more: www.edelman.com/trust2017
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2017 Edelman Trust Barometer - Financial Services Results
- 1. Financial Services 2017 Edelman Trust Barometer
- 2. 2017 Edelman Trust Barometer Methodology 2 28-country global data margin of error: General Population +/-0.6% (N=32,200), Informed Public +/- 1.2% (N=6,200), Mass Population +/- 0.6% (26,000+). Country-specific data margin of error: General Population +/- 2.9 ( N=1,150), Informed Public +/- 6.9% (N = min 200, varies by country), China and U.S. +/- 4.4% (N=500), Mass Population +/- 3.0 to 3.6 (N =min 740, varies by country), half sample Global General Online Population +/- 0.8 (N=16,100). Informed Public 9 years in 20+ markets Represents 13% of total global population 500 respondents in U.S. and China 200 in all other countries Must meet 4 criteria: Ages 25-64 College educated In top 25% of household income per age group in each country Report significant media consumption |and engagement in business news General Online Population 6 years in 25+ markets Ages 18+ 1,150 respondents per country All slides show General Online Population unless otherwise noted 17 years of data 33,000+ respondents total All fieldwork was conducted between October 13th and November 16th, 2016 Online Survey in 28 Countries Mass Population All population not including Informed Public Represents 87% of total global population
- 3. 2016: The Inversion of Influence 3 Source: 2017 Edelman Trust Barometer. The Trust Index is an average of a country’s trust in the institutions of government, business, media and NGOs. Informed Public and Mass Population, 28-country global total. Influence & Authority Influence Authority Mass Population 85% of population 48 Trust Index 15% of population 60 Trust Index Informed Public 12pt Gap
- 4. 2017: Trust Gap Widens Percent trust in the four institutions of government, business, media and NGOs, 2012 to 2017 4 Source: 2017 Edelman Trust Barometer. The Trust Index is an average of a country’s trust in the institutions of government, business, media and NGOs. Informed Public and Mass Population, 25-country global total. 21pts 19pts 18pts 53 60 60 44 48 45 2012 2016 2017 Informed Public 15pt Gap 9pt Gap A 3-point increase in the last year 12pt Gap Largest Gaps Mass Population
- 5. Average trust in institutions, Informed Public vs. Mass Population Trust Index 5 Mass Population Left Behind Source: 2017 Edelman Trust Barometer. The Trust Index is an average of a country’s trust in the institutions of government, business, media and NGOs. Informed Public and Mass Population, 28- country global total. Trusters (60-100) Neutrals (50-59) Distrusters (1-49) 45 Global 70 India 67 Indonesia 62 China 59 Singapore 59 UAE 52 Netherlands 50 Colombia 50 Mexico 47 Brazil 47 Canada 47 Italy 47 Malaysia 47 U.S. 45 Argentina 42 Hong Kong 41 S. Africa 41 Spain 41 Turkey 40 Australia 39 Germany 38 France 37 U.K. 36 S. Korea 36 Sweden 35 Ireland 34 Japan 34 Poland 31 Russia The Mass Population distrusts their institutions in 20 of 28 countries Mass Population Informed Public 60 Global 80 India 79 China 78 Indonesia 77 UAE 71 Singapore 68 U.S. 62 Canada 62 Netherlands 61 Italy 61 Mexico 57 Malaysia 57 Spain 56 France 56 U.K. 55 Colombia 54 Australia 54 Germany 53 Hong Kong 51 Argentina 51 Brazil 50 S. Korea 50 Turkey 49 Japan 49 S. Africa 47 Sweden 45 Russia 44 Ireland 43 Poland
- 6. 2017: Mass Population Rejects Established Authority 6 Mass population now has influence and authority Establishment left empty-handed Influence & Authority
- 8. How much do you trust each institution to do what is right? 8
- 9. Trust in All Four Institutions Declines Percent trust in the four institutions of government, business, media and NGOs, 2016 vs. 2017 9 Source: 2017 Edelman Trust Barometer Q11-620. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” (Top 4 Box, Trust) General Population, 28-country global total 55 53 48 42 53 52 43 41 Business MediaNGOs Government Two of four institutions distrusted Neutral Trusted Distrusted -2 -1 -5 -1 50% 20172016
- 10. Trust in Media Plunges to All-Time Lows Percent trust in media, and change from 2016 to 2017 10 Source: 2017 Edelman Trust Barometer Q11-620. [TRACKING] [MEDIA IN GENERAL] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal.“ (Top 4 Box, Trust) General Population, 28-country global total. GDP 5 = U.S., China, Japan, Germany, U.K. Y-to-Y Change+− NeutralDistrust Trust 43 43 25 29 31 31 32 32 32 33 33 39 40 40 42 42 42 44 44 45 45 47 47 48 48 54 54 65 66 67 Global28 GDP5 Turkey Ireland Poland Russia Australia Japan U.K. France Sweden S.Africa Argentina S.Korea Germany HongKong Malaysia Spain UAE Canada Colombia Mexico U.S. Brazil Italy Netherlands Singapore China India Indonesia Distrusted in 82% of countries 50% All-time low in 17 countries -6-5 -5 -13-5 -6 -3 -2 -5 -3 -5 -15 -10 -10 -11 -6 -2 -1 -8-10-7-3-10+2 -6 -6 +2 +4+30
- 11. Trust in Government Further Evaporates Percent trust in government, and change from 2016 to 2017 11 Source: 2017 Edelman Trust Barometer Q11-620. [TRACKING] [GOVERNMENT IN GENERAL] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal.“ (Top 4 Box, Trust) General Population, 28-country global total. GDP 5 = U.S., China, Japan, Germany, U.K. Y-to-Y Change+− NeutralDistrust Trust 41 47 15 20 24 24 25 25 28 31 32 32 33 36 37 37 37 38 40 43 44 45 47 51 51 69 71 75 75 76 Global28 GDP5 S.Africa Poland Brazil Mexico France Spain S.Korea Italy Colombia Ireland Argentina U.K. Australia Japan Malaysia Germany HongKong Canada Russia Sweden U.S. Netherlands Turkey Singapore Indonesia India UAE China 50% -1 -8 -2 -2 -1 -5 -10 -9 -5-8+1 -1 -7 0 Distrusted in 75% of countries Declines in 14 countries +1 -1 +3 +1 +1 0 +7 0 0 +8 +2 +9 +13 +10 -5 -3
- 12. Trust in NGOs Declines Percent trust in NGOs, and change from 2016 to 2017 12 Source: 2017 Edelman Trust Barometer Q11-620. [TRACKING] [NGOs IN GENERAL] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal.“ (Top 4 Box, Trust) General Population, 28-country global total. GDP 5 = U.S., China, Japan, Germany, U.K. Y-to-Y Change+− NeutralDistrust Trust 53 47 21 23 31 39 43 46 46 48 52 53 54 55 56 58 58 58 59 59 59 60 60 60 61 61 64 64 71 71 Global28 GDP5 Russia Sweden Japan Germany Ireland Netherlands U.K. Poland Australia Turkey France UAE S.Korea Malaysia S.Africa U.S. Canada HongKong Italy Brazil Colombia Spain China Singapore Argentina Indonesia India Mexico 50% -2 -2 -3 -2 -1-6 -3 -4 Distrusted 8 countries Declines in 21 countries -6 +10 0 +7 -3-4 -3 -3 -6 -2 -5 -2 -2 -4 +2 +1 -2 -3 -10 -6 +7 NGOs less trusted than business in 11 countries
- 13. Business on the Brink of Distrust Percent trust in business, and change from 2016 to 2017 13 Source: 2017 Edelman Trust Barometer Q11-620. [TRACKING] [BUSINESS IN GENERAL] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal.“ (Top 4 Box, Trust) General Population, 28-country global total. GDP 5 = U.S., China, Japan, Germany, U.K. Y-to-Y Change+− NeutralDistrust Trust 52 51 29 34 39 40 41 41 43 43 45 45 46 46 48 50 50 55 56 56 58 58 60 61 64 64 67 67 74 76 Global28 GDP5 S.Korea HongKong Russia Poland Ireland Japan Germany Turkey Argentina U.K. Spain Sweden Australia France Canada Italy Malaysia S.Africa Singapore U.S. Netherlands Brazil Colombia UAE China Mexico India Indonesia 50% -2 -4 -3-2 Distrusted 13 countries Declines in 18 countries -4 -5 -2 -9 -1 -2 +7 -6 -3 +5+1 +1 +2 +1 +1 0 +4 -6 -2 -2 -4 -2 +4 -3 +5-9
- 14. All-time Low for CEO Credibility Percent rate CEOs as extremely/very credible, 2016 vs. 2017 14 Source: 2017 Edelman. Trust Barometer Q130-747 Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, how credible would the information be—extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Very/Extremely Credible) General Population, 28-country global total, question asked of half the sample. GDP 5 = U.S., China, Japan, Germany, U.K. Y-to-Y Change+− NeutralDistrust Trust 37 18 23 23 24 25 26 27 27 27 28 28 28 31 34 36 38 40 40 42 43 44 48 48 51 52 55 61 70 Global 28-Country Japan France Poland S.Korea Canada Australia HongKong Ireland Netherlands Germany Italy U.K. Sweden Russia Singapore U.S. Malaysia Spain Argentina Turkey China Brazil Colombia Indonesia S.Africa UAE Mexico India 50% -12 -11 -12-19 CEOs not credible in 23 countries Declines in all 28 countries -7 -9 -12 -16 -7 -10 -16 -15-15 -14 -5 -16 -10 -6 -8-13-12-11 -13-12 -15-17 -16-10 -12
- 15. United Nations Most Trusted Multinational Institution Percent trust in the three multinational institutions of the European Union, United Nations and International Monetary Fund 15 Source: 2017 Edelman Trust Barometer. Q11-620. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” (Top 4 Box, Trust) Informed Public and General Population, 28-country global total. *The European Union is only asked of 11 European Countries. NeutralDistrust Trust Informed Public General Population 51 69 60 39 57 46 European Union* United Nations International Monetary Fund EU distrusted in all 11 countries surveyed among general population IMF distrusted in 17 of 28 countries surveyed among general population
- 16. Percent trust in the four institutions of government, business, media and NGOs, pre-election, morning after, and post-election, 2017 Trust Volatility in the United States 16 Source: 2017 Edelman Trust Barometer Q11-620. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” (Top 4 Box, Trust) General Population, United States. “Pre-election” and “Post-election” audiences refer to the 2017 Edelman Trust Barometer U.S. sample; the “Supplementary Survey” audience refers to the 2017 Edelman Trust Barometer U.S. Post- Election Supplementary survey. Pre-Election Optimism Followed by Plunging Trust 60 57 48 48 53 57 43 43 46 47 30 33 Business MediaNGOs Government Two of four institutions distrusted Neutral Trusted Distrusted 50% Pre-election Oct. 13 – Nov. 8, (n=800) Post-election Nov. 9 – Nov. 16, (n=350) Supplementary Survey Nov. 28 – Dec. 11
- 18. Without Trust, Belief in the System Fails
- 19. Majority Believe the System is Failing Them 19 Source: 2017 Edelman Trust Barometer Q672-675, 678-680, 688-690. For details on how the “system failing” measure was calculated, please refer to the Technical Appendix. How true is this for you? Sense of injustice Lack of hope Lack of confidence Desire for change 53 32 15 Not at all true 9 8 7 6 5 4 3 2 1 1 in 3 are uncertain Completely true System failing System working Approximately
- 20. 20 Source: 2017 Edelman Trust Barometer S8. Thinking about your annual household income in 2015, which of the following categories best describes your total household income that year? S7. What is the last grade in school you completed? S9. How often do you follow public policy matters in the news? S10. How often do you follow business news and information? General Population, 28-country global total, cut by ‘system failing’ measure. For details on how the “system failing” measure was calculated, please refer to the Technical Appendix. Even Those at the Top Are Disillusioned Percent who believe the system is not working High-Income College-Educated Well-Informed Top quartile of income College degree or higher Follow business and public policy information several times a week or more 48% 49% 51%
- 21. State of Trust in Financial Services 21
- 22. Percentage point change in trust in each industry sector, 2012-2017 Sector Trends 22 Source: 2017 Edelman Trust Barometer. Q45-429. Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population, 25-country global total. Trust in Financial Services Increasing Faster Than Other Sectors Consumer Packaged Goods 6 Energy 9 11 Telecommunications 5 Food & Beverage 3 Financial Services
- 23. Lower Trust Financial Services Sector Least Trusted Percent who trust each industry 23 Source: 2017 Edelman Trust Barometer Q45-429. Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population, 28-country global total. 54 61 63 66 76 Higher Trust Financial Services Energy Consumer Packaged Goods Food & Beverage Technology
- 24. Financial Services Trusted in 2 of 5 Financial Centers Percent trust in the financial services sector, 2016 vs. 2017 24 Source: 2017 Edelman Trust Barometer. Q45-429. Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population, 28-country global total. GDP 5 = U.S., China, Japan, Germany, U.K. Y-to-Y Change+− NeutralDistrust Trust 54 53 35 45 55 60 65 Global 28 GDP 5 Germany U.K. Hong Kong U.S. Singapore 50% +1+3 +4 +1 +6 Germany U.K. Hong Kong U.S. Singapore
- 25. Trust Gap in Financial Services Sector Grows in 2017 Percent trust in business vs. trust in the financial services sector, 2012 to 2017 25 Source: 2017 Edelman Trust Barometer. Q11-620. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” (Top 4 Box, Trust) Q45-429. Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same nine-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust). General Population and Informed Public, 25-country global total. 43 47 48 48 51 54 48 50 51 52 56 62 2012 2013 2014 2015 2016 2017 Financial ServicesBusiness 47 50 49 49 53 52 54 58 58 56 62 63 2012 2013 2014 2015 2016 2017 11pt gap 8pt gap Informed Public General Population
- 26. Not Gaining Ground Trust in financial services and sub-sectors, 2016 vs 2017 Financial Services Sub-Sectors 26 Source: 2017 Edelman Trust Barometer. Q45-429. Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Q61A-65A. Now thinking about specific sectors within the financial services industry, please indicate how much you trust businesses in each of the following sectors to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust), question asked of one-fifth of the sample. General Population, 28-country global total. *Asked as Mobile Banking/e-payments in 2016. 52 59 48 52 49 63 54 60 43 53 50 59 Financial Services Credit Cards/ Payments Banks Insurance Financial Advisory/ Asset Management Mobile Wallet/ E-Payments Neutral Trusted Distrusted 50% 20172016
- 27. Lack of Faith in Global Financial Services System 27 Source: 2017 Edelman Trust Barometer. Q658. For the statement below, please indicate how much you agree or disagree. (All respondents except Top 4 Box, Agree), question asked of one-fifth of the sample. General Population, 28-country global total, and cut by “system failing” respondents. 53%do not agree that financial market reforms have increased economic stability 63%do not agree that financial market reforms have increased economic stability Among those who think the system is broken
- 28. Support For Policies May Limit Financial Services Sector Growth 28 Source: 2017 Edelman. Trust Barometer Q709-718 For each of the statements below, please indicate how much you agree or disagree. (Top 4 Box, Agree) General Population, 28-country global total. Nearly 1in2 agree 69%agree 72%agree Protectionism Slower Growth “The government should protect our jobs and local industries, even if it means that our economy grows more slowly.” “We need to prioritize the interests of our country over those of the rest of the world.” “We should not enter into free trade agreements because they hurt our country’s workers.” Protectionism
- 30. Distrust Creating Cycle of Fear 30
- 31. Systemic Distrust and Fear Trigger Action 31 Source: 2017 Edelman Trust Barometer. Corruption Q685-687, Globalization Q681-684, Eroding social values Q676 and Q758, Immigration Q685, Pace of innovation Q677. System is failing: Q672-675, 678-680, 688-690. For details on how the societal fears and the “system failing” measure were calculated, please refer to the Technical Appendix. The margin of error for the countries scores was added and subtracted from the global mean. Countries were considered above the global average if their score was higher than the global mean plus the margin of error. Corruption • • • • • • • • • • • Immigration • • • • • • • • • • Globalization • • • • • • • • • • Eroding social values • • • • • • • • • • • • • • Pace of change • • • • • • • • • % Who agree system is failing 53 72 72 67 67 67 64 62 62 62 60 59 59 57 56 55 55 53 52 51 48 48 42 42 36 35 30 23 19 Global France Italy Mexico S.Africa Spain Poland Brazil Colombia Germany U.K. Australia Ireland U.S. Netherlan ds Canada Sweden Argentina Malaysia Turkey Russia S.Korea Indonesia Japan India Hong Kong Singapore China UAE 10 countries with above- average belief the system is failing and multiple fears 4 countries with above- average belief the system is failing – but lack multiple fears Above-Average Level of Fear Above-Average Belief the System is Failing Countries with Multiple Fears and Failing System
- 32. A Case in Point: U.S. Trust Barometer Supplement: Post-U.S. Election Flash Poll, 1,000+ General Population Respondents, Nov. 28 to Dec. 11, 2016 32 Source: 2017 Edelman Trust U.S. Flash Poll Q14. Who did you vote for? Audience: U.S. General Population, grouped by “system failing” segments and level of fear from the Trust Barometer. For details on how systemic distrust and societal fears were measured, please refer to the Technical Appendix. Respondents were labeled as “fearful” if they were fearful of at least one of the following societal issues: corruption, immigration, globalization, eroding social values, and pace of innovation. System Failing and Fearful Fearful 11 34 Trump Voters Clinton Voters 25 42 67% are fearful 45% are fearful
- 33. A Case in Point: U.K. Trust Barometer Supplement: UK Supplement, 1,150 General Population Respondents, December 23, 2016 to January, 7 2017 33 Source: 2017 UK Trust Supplement Q15. Did you vote…? Audience: UK General Population, grouped by ‘system failing’ segments and level of fear from the Trust Barometer. For details on how the societal fears and the “system failing” measure were calculated, please refer to the Technical Appendix. Respondents were labeled as ‘fearful’ if they were fearful of at least one of the following societal issues: corruption, immigration, globalization, eroding social values, and pace of innovation. System Failing and Fearful Fearful 11 34 Leave the EU Remain in the EU 10 44 54% are fearful 27% are fearful
- 34. Concerns Leading to Fears for Financial Services Percent of respondents who are concerned or fearful regarding each issue 34 Source: 2017 Edelman Trust Barometer. Corruption Q685-687, Globalization Q681-684, Eroding social values Q676 and Q758, Immigration Q685, Pace of innovation Q677. For details on how the societal fears were measured, please refer to the Technical Appendix. 69% Concerned 40% Fearful 55% Concerned 28% Fearful 56% Concerned 25% Fearful 62% Concerned 27% Fearful 51% Concerned 22% Fearful Corruption Immigration Eroding Social ValuesGlobalization Pace of Innovation Sanctions levied by DOJ and SEC in 2016 reached record level of $2.43 billion Unaccountable global money movement Cheaper labor yields lower earning potential Less access to qualified talent Sales pressure outweighing customer needs Rocking the cash-based economy Privacy concerns
- 35. Financial Services Must Actively Build Trust 35
- 36. 36 Source: 2017 Edelman Trust Barometer, Financial Services Do Things Differently Enforce Radical Transparency Communicate with a Human Voice 1 Use Two-Way Communication 2 Solve Real Problems with Tech 3 4
- 37. Peers Now as Credible as Experts Percent who rate each spokesperson as extremely/very credible, and change from 2016 to 2017 37 Source: 2017 Edelman. Trust Barometer Q130-747 Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, how credible would the information be—extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Very/Extremely Credible) General Population, 28-country global total, question asked of half the sample. 1 Human Voice “People in this country have had enough of experts.” – Michael Gove, Member of Parliament, U.K. 1 60 60 60 48 46 43 37 35 29Apersonlike yourself Technicalexpert Academicexpert Employee Financial industryanalyst NGO representative CEO Boardof directors Government official/regulator CEO credibility decreased the most, dropping to an all-time low A person like yourself now tied for most credible spokesperson -3 -7 -5 -4 -7 -5 -12 -10 -6
- 38. 17 20 21 24 26 2121 22 23 31 26 23 53 38 37 33 32 30 28 29 29 25 22 29 16 22 22 21 23 22 9 9 11 11 13 14 Employees Most Credible Most trusted spokesperson to communicate each topic 38 Source: 2017 Edelman Trust Barometer Q610. Who do you trust MOST to provide you with credible and honest information about a company's financial earnings and operational performance, and top leadership’s accomplishments? Q611. A company’s business practices, both positive and negative, and its handling of a crisis? Q612. A company’s employee programs, benefits and working conditions, and how a company serves its customers and prioritizes customer needs ahead of company profits? Q613. A company’s partnerships with NGOs and effort to address societal issues, including those to positively impact the local community? Q614. A company’s innovation efforts and new product development? Q615. A company’s stand on issues related to the industry in which it operates? General Population, 28-country global total, question asked of one-quarter of the sample. 1 Human Voice Company CEO Senior executive Employee Activist consumer Academic Media spokesperson Partnerships/ programs to address societal issues Business practices/ crisis handling Financial earnings & operational performance Innovation effortsTreatment of employees/ customers Views on industry issues
- 39. Talk With, Not At Which is more believable? 39 Source: 2017 Edelman Trust Barometer Q754. You are about to see a series of two choices. Each choice describes a different source of information, a different format for presenting information, or a different style of communicating information. For each pair, we want you to choose the one that you are more likely to believe is giving you the truth. While we know that some of these choices may not be easy, please do your best to select only one of the two options given-the one that is most likely to be true most often. General Population, 28- country global total, choices shown to half the sample. 2 Two-Way Communication 51% Personal experience 49% Data 62% Company’s social media 38% Advertising
- 40. 40 Source: 2017 Edelman Trust Barometer Q754. You are about to see a series of two choices. Each choice describes a different source of information, a different format for presenting information, or a different style of communicating information. For each pair, we want you to choose the one that you are more likely to believe is giving you the truth. While we know that some of these choices may not be easy, please do your best to select only one of the two options given--the one that is most likely to be true most often. General Population, 28- country global total, choices shown to half the sample. Official Sources Are Suspect Percent who find each source more believable than its pair 2 Two-Way Communication 55% Individuals 45% Institutions 71% Reformer 29% Preserver of Status Quo 64% Leaked Information 36% Company Press Statements
- 41. Innovation Most Desired Across Product Sets Percent who feel each financial product/service is most in need of innovation or new ideas 41 Source: 2017 Edelman Trust Barometer. Q659. Which of the following types of financial products or services do you feel is most in need of innovation or new ideas? Question asked of one-fifth of the sample. General Population, 28-country global total. 31% 18% 24% 45% 45% 10% Loans to support the purchase of a home Personal insurance products Lending and loan services in general Education financing Financial support for small businesses Not sure/ don't know 3 Technology
- 42. Blockchain has Widest Trust Gap Among Tech Subsectors Percent trust in various technology industry sub-sectors, informed public vs. general population 42 Source: 2017 Edelman Trust Barometer. Q63E-71E. Now thinking about specific sectors within the technology industry, please indicate how much you trust businesses in each of the following sectors to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust), question asked of one- fifth of the sample. General Population and Informed Public, 28-country global total 3 Technology 64% 70% 67% 72% 49% 60% 54% 63% Blockchain Internet of Things Cloud Mobile/Telecom Informed Public General Population
- 43. Transparency Builds Trust for Automated Investment Advice Percent who think each are most likely to increase trust in automated investment advice that might be received from a web site or mobile app 43 Source: 2017 Edelman Trust Barometer. Q660. Which of the following are most likely to increase your trust in automated investment advice that you might receive from a web site or mobile app? Question asked of one-fifth of the sample. General Population, 28-country global total. 4 Radical Transparency 36% Easy access to customer service online or by phone 40% Simple, clear explanations of the investment recommendations 50% Simple, clear explanations of any costs 13% Not sure/ don't know Better-than- average results for my investments 28%
- 44. Importance vs. performance of behavior in building trust in a financial services company Trust-Building Behaviors 44 Source: 2017 Edelman Trust Barometer. Q336-657. How important is each of the following behaviors to building your TRUST in a company? Use a 9-point scale where one means that behavior is “not at all important to building your trust” and nine means it is “extremely important to building your trust” in a company. (Top 4 Box, Importance) Q344B-344M. How well do you think the financial services industry is performing on the behaviors listed below. Use a 9-point scale where one means they are “performing extremely poorly” and nine means they are “performing extremely well”. (Top 4 Box, Performing), question asked of one-fifth of the sample. General Population, 28-country global total. Contributing to Greater Good Critical for Financial Services BehaviorsActions Protects Consumer Data 85 / 69 Contributes to the Greater Good 83 / 61 Develops Innovations with Positive Impact on My Life and World 82 / 63 Leadership Effectively Represents Interests of all Stakeholders 81 / 61 16221920 4 Radical Transparency Data Security & Privacy Social Purpose Smart Technology Investment Solve Customer Pain Points Importance / Performance Gap
- 45. Thank You Financial Services 2017 Edelman Trust Barometer
Notas do Editor
- 2017 was a year of almost unimaginable upheaval. People in multiple countries rejected their government’s leaders or policies, demonstrating their dissatisfaction and distrust by electing reform or outsider candidates, voting to leave trading blocs, or refusing to support treaties negotiated by their governments. Business was rocked by corporate scandals that saw executives investigated and even charged with criminal acts. The mainstream media lost audience as people turned to social media and search for information, advertising results were questioned, and the specter of fake news left the public wondering what was true anymore. The findings of the 2017 Trust Barometer provide a roadmap for understanding the forces shaping these movements and events, the shifts in influence and power as the tide of populist action sweeps across many western-style democracies around the world. Very importantly, too, the Trust Barometer provides important insights for organizations seeking to understand and operate in markets both in and outside their continental borders.
- Edelman has been studying trust for 17 years, and we are now in our 6th year of surveying an expanded sample across the general online population. This year, we spoke to more than 33,000 respondents in 28 markets. In each country, the sample is nationally-representative, but do keep in mind that this is an online survey, so we can only be representative of the general online population, which in some markets will not represent the full population, especially in developing markets where the online population can be much smaller and the data can skew to those who have the relative affluence to secure online access. Each year, we also oversample the Informed Public, a segment of the population that is higher-income, college-educated and highly-informed on business and public policy matters. This year, that represents about 13% of the global sample, and you'll see some slides where we compare that informed public against the mass population.
- Last year’s shift in influence was about an inversion of the traditional pyramid of influence, and a separation of influence and authority. Gone are the days of the traditional “pyramid of influence,” in which both authority and influence were concentrated in the hands of a small number of elite opinion-shapers. This model was predicated on the belief that the informed public had access to superior information, their interests were interconnected with those of the mass population and that becoming ‘an elite’ was open to all of those who work hard. But today, due primarily to the democratization of information, we have seen the pyramid turned upside down. Influence now rests among the mass population, who talk to each other on social media or use search to access information, and no longer need to rely on the more “informed” population for ideas. Influence is no longer automatically granted to those in authority. And, as we first saw in 2016 , the Mass Population’s view of the world—at a trust level of just 48—is vastly different from that of the top 15% who had a trust level of 60 in 2016.
- In 2016, the barometer focused on the widening gap between the informed public and mass population segments. Unfortunately, instead of solving the problem, we have allowed this gap to grow even bigger. Trust inequality grew by 3pts over 5 years from 2012-2016. In 2017, it widened another 3 points, to where we now have a 15-point gap in the trust levels of the informed public and the mass population. In many markets, that inequality is even greater. Leading the inequality scoreboard are the U.S. at 21 pts, the U.K. at 19 pts, and France at 18 pts.
- We now live in a world where more than one-third of the countries are trusters among the informed public, while the mass population distrusts their institutions in 20 of 28 counties, and has trust in only 3 of them This glaring inequality is a situation that is not sustainable.
- In 2017, the mass population has used its broad-reaching influence to reassert its authority, rejecting both the influence and authority of the establishment. This has left the informed public --those who once were at the top of the triangle--without either influence or authority, and scratching their heads wondering what happened to them. The details of this year’s Trust Barometer provide some answers as to what is happening.
- First, trust in institutions has declined where it has reached crisis levels. In today’s atmosphere of distrust, the unvirtuous, self-reinforcing cycle of societal fears interacting with a system that is highly suspect is reinforced and amplified by the radical changes in our media ecosystem, the long-term impact of which are as yet little-understood.
- Each year we ask respondents to tell us how much they trust each of 4 institutions—business, government, NGOs and the media – to do what is right.
- This year, we saw, for the first time ever, declines in all four institutions. This was the year that trust in media fell apart, plunging 5 points to a level nearly as low as government. Two of the four institutions are now distrusted, media and government. NGOs, which long held a substantial lead as the most trusted institution, has seen that lead erode over the years, to where it is now barely more trusted than business. Business is just above the 50% mark which marks the dividing line between trust and distrust.
- Media is an all-time low both globally and in 17 of the 28 countries we surveyed. It is now distrusted in 82% of countries with steep declines both globally and in almost every country. We believe this shift may be related to the fact that many people believe the media is part of the established elite. More about this in a moment.
- Government trust has been extremely low for several years and this year continues to evaporate further. Half the countries saw fresh declines with steep decreases in Mexico, South Korea, Australia, Canada and Russia. It is distrusted as an institution in 3 out of 4 countries.
- NGOs declined in 21 of 28 countries, eroding the strong lead it once had as the number one most-trusted institution. In 11 countries it is now less trusted than business, which is shocking considering its traditional role as the institution that helps promote and deliver benefits to society. There’s a prevailing feeling of that NGOs just aren’t getting things done. Their missions and purpose are in the right place, but a lack of action may be the cause for the decrease in trust.
- While trust in media and in government are already at crisis levels, business at 52% trust globally is still above the line of distrust—but just barely. In 2017, business trust declined in 18 countries, notably in Argentina, Canada, Colombia and Mexico. Today, business is distrusted in 13 countries and is in neutral territory (which is not the same as trusted) in 7 countries.
- CEO credibility declined both globally, and in every single country we surveyed. Only Mexico and India find CEOs to be credible. In the vast majority of countries, CEOs are not credible. In Japan, France, Poland, and S. Korea, less than 1 in 4 find CEOs to be credible.
- UN is in trusted or neutral trust territory in 22/28 countries surveyed Most trusted among informed publics (27/28 countries) EU distrusted in all 11 EU countries Trusted or neutral among informed publics in 8/11 EU countries IMF distrusted in 17/28 countries surveyed Trusted or neutral among informed publics in 21/28 countries surveyed
- In the U.S., the election-driven sense of increased trust and optimism was short-lived. If we compare the trust scores for those respondents who answered the survey before the election, to those who answered after the election, you see a marked decrease in trust levels for 3 of the 4 institutions. Fast forward to several weeks later, and trust levels have plunged to where all 4 of our institutions are now distrusted.
- This year’s barometer showed institutions experiencing lower levels of trust. The yellow portion of the slide refers to the questions we asked respondents to help understand why their trust was low – why they no longer believe that the system is working. **** Questions included: Do you feel the system is working fairly? The answer? No. The majority of people believe that the system is biased in favor of the elites, who are enjoying more benefits than everyone else. They are feeling left behind and they’re not happy about it. Do people have hope that their hard work will be rewarded, providing hope that your children will have a better future of that the country is moving in the right direction? Again, the answer is no. Do they have confidence in their current leaders? No. Do they want change, a better deal? Yes.
- The results were a bit stunning. The takeaway: We’re living in a period where the general sense is that the system isn’t working. Globally, the majority of respondents - 53% - believe that the system is failing them, that it is not fair, that it does not offer reasons for hope or confidence, and they want change. Only 15% believe the system is working, and approximately one in three are uncertain. These 32% who are doubters can make the difference between a complete collapse, or they can become allies in restoring faith where it has been lost.
- One of the most surprising findings is that the problem is now transversal—not just a mass vs. elites problem. Even among those who are higher-income, well-educated and well-informed, approximately half believe that the system is not working. The takeaway: In the financial services sector, even your HNW individuals – many of whom are on the corporate/institutional side – have the same concerns.
- Many companies might be tempted to run for cover—but people continue to ask business to play a leading role in not only delivering profits, but also contributing to improving the economic and social conditions in the community in which it operates.
- Trust in FS is increasing faster than any other of the sector’s we survey in the trust barometer. It’s up 11 percentage points since 2012 (43%) and up 3 percentage points since 2016 (51% -> 54%) It’s critical to understand, however, that since the global financial crisis, trust in financial services has had no where to go but up.
- It’s not surprising, then, that we see financial services as the least trusted sector that we survey. Amidst this sea of regulatory uncertainty, it is incumbent for business to undertake trust-building behaviors (which we’ll talk about soon) so the trajectory doesn’t stop
- Key factors within the top 5 financial centers Germany Very little equity culture; anything riskier than a low-yield savings account is viewed as unwise Deutsche Bank – share price hammered in Sept. 2016 surrounding fears that it didn’t have funds to cover mounting legal costs. Bank and Germany govt. both denied that bailout in cards. UK Uncertainty surrounding Brexit – potential for FS jobs out of London. UBS and HSBC both said they will move roughly 1K jobs from London to other European city Regulation delays –MiFID II (Creation of single market for investment services and activities) until 1/2018, Basel III (global regulatory framework on bank capital adequacy, stress testing and market liquidity risk) until 4/2019 Hong Kong Financial services comprises 17.6% of the GDP in HK With regulation around capital and liquidity still pending, the question this market is asking is: Will competitiveness be affected if regulatory bodies tighten control of financial markets? United States US has taken actionable steps to improve lives; (CFPB); (legal action against corruption/bad practices); (fun, new easy-to-use products) Singapore Monetary Authority of Singapore (MAS) has committed $225 million to establish the country as a “regulatory sandbox” for fintech companies As the country moves toward an increasingly e-payments focused society, MAS looks to streamline existing regulatory framework across in various payments/remittance regulations.
- Here, we see the growing gap between the informed public and general population in business and the financial services sector. Most startling is the five-point gap in 2016 has grown by three in 2017 to 8 points. This only reinforces that financial services companies work to build trust and close this gap.
- Here’s a snapshot of trust in FS generally and how it compares to the FS subsectors we survey. Notable here is that we don’t see any particular industry gaining ground YOY (and, in fact, saw trust erode 4 points from 2016 2017 in the mobile wallet/e-payments space). A 2016 study by Chadwick Martin Bailey, a Boston-based consulting shop, may explain this falling trend. The most cited concerns over mobile wallets were identify theft, fees and privacy. We go into this in a bit more detail later, but as the pace of innovation grows, the more the general public seems to be concerned and fearful of it.
- While the system continues to recover, it’s obvious that the general population hasn’t reached a consensus on reforms increasing the financial services system’s stability. More than half of our respondents said they don’t agree financial market reforms have increased economic stability In fact, among those folks who think the “system is broken,” calls for reform are even greater, as 63% of them said the same. When we look at this question through the lens of larger financial centers around the world, this becomes more clear. In the UK, we continue to see the uncertainty around Brexit. Concerning here is the potential move of financial services companies out of the city, as well as the UK’s potential divergence from the single market. In the US, we see the potential clawbacks of the tenets of Dodd-Frank, including the Volcker rule and the powers and processes of bodies such as the FSOC and the CFPB
- The failure of FS companies to act is going to affect their bottom line. In this climate, there is broad support for policies that are not exactly business-friendly for financial services companies. Nearly 1 in 2 are against free trade agreements Trump abandons 12-nation Trans-Pacific Partnership, ending an era of multinational trade agreements. Signals his promise to follow through on “America First” approach. 69% believe we need to prioritize the interests of our country 72% believe that government should be doing more to protect jobs—even if it means that these policies result in slower economic growth. This is where consequences occur. Financial services companies have an obligation to address these concerns.
- Once people have lost faith in the system that is supposed to protect and provide for them, they become more susceptible to fears. It is these societal and economic fears that fuel the fire that leads to populist actions.
- This is where the crisis in trust can have serious consequences. The list of 10 countries in red combine for an above-average systemic lack of faith and multiple above-average levels of fear. Of these countries, it’s a who’s who of recent populist actions. Brexit in the UK Election of Trump in the US Overthrow of the Italian government’s reform package France’s right-wing nationalist presidential candidate Marine Le Pen Columbia opposing a peace agreement to end 50 years of war b/w gov’t and FARC Populist leader Alvaro Uribe argued deal was too lenient on rebels and insisted tougher agreement was possible Mexico’s populist presidential candidate Andres Obrador, the “leftist maverick,” uses messages that resonate with the underprivileged and angry These changes (or coming changes) in government– all of these shifts in power occurred in countries that had a higher-than-average belief that the system is broken, as well as multiple societal and economic fears.
- Here’s a case in point. We conducted a supplementary flash poll in the U.S. in the weeks after the Nov. 8 Presidential Election. As you can see, among respondents who voted for Clinton, about 1 in 3 were both fearful and also believe the system is broken. Another 11% were fearful, but did not necessarily believe the system is failing – a total of 45% who are fearful. Compare that to people who voted for Trump, and you can see that a far higher percentage of Trump voters - 67% - are fearful.
- This slide isn’t surprising. Vote leave had relentless focus on core messages – deliberately choosing heavily contested “facts” so public would be invited to fight them on it The combination of populists Boris and Farage gave two-pronged approach, bringing both traditional Labour/Tory voters together The reason the polls were so consistently wrong throughout the campaign was that they failed to factor in the so called “disengaged middle” in our segmentation i.e. the people who traditionally don’t vote. This time 2.8 million of them did, despite not having voted in Gen Election 2015 (and many never before). It was the once in a lifetime opportunity to kick the establishment and boy did they
- We measured a series of societal and economic concerns commonly associated with populist movements and found broad agreement that these concerns are true. So, a significant portion of the population found many of these to be so prevalent that we describe them to be not just concerned, but fearful. On a 1-9 scale, Respondents who are “concerned” chose a value of 6-9 on the questions represented in each of these categories Respondents who are “fearful” chose a value of 8-9 on the questions represented in each of these categories Ex. 62% are concerned about globalization. 27% are so concerned that they can be described as fearful.
- So what must financial services companies do?
- For the first time ever, “a person like yourself” is as credible as a technical or academic expert. As we mentioned earlier credibility of CEOs is at an all-time low, with a 12-point decline in the last year. We also saw a 10-point drop for the board of directors and 7-point drop for financial industry analysts. This can be attributed to a number of factors, including: The pervasive distrust of the financial services sector, writ-large Information quoting these sources may have be distributed via traditional media channels Their expertise puts them in the “establishment” camp
- Start with your employees. We have been saying this year after year, and still many companies believe their responsibility to employees is just about providing decent pay and benefits. While these factors are important, they are far from sufficient in today’s society. Let’s be very clear: employees are your greatest assets. As you can see, they are the most trusted spokesperson on every one of the six topics that we measure—including financial earnings, your innovation efforts, and your programs to address societal issues. And arguably, many of them have lost faith or are questioning the system. You have the opportunity to ignite them as advocates for business and to help build their trust in the system by engaging to bring them into the dialogue. According to our 2016 FS trust barometer, financial services ist he most trusted sector among employees working in an industry-related company.
- HOW you engage and communicate must change. In every way, conversational communications are far more effective today than broadcast-style communications. Spontaneous speakers are more believed than those who seem rehearsed, blunt spokespeople are more believed than those who are diplomatic. People believe stories based on personal experiences over those based on data, and they believe what companies say on their social media pages more than they believe what they say in advertising. You have to talk WITH people, not AT them.
- In fact, any information coming from official sources is now distrusted. Today, people are more likely to believe that individuals are giving them the truth over institutions; they are more likely to believe what they hear from reformers vs those who seek to preserve the status quo, and leaked information is more believed than company press statements.
- Here, we asked what types of financial products respondents felt was most in need of innovation or new ideas. The response, overwhelmingly, was weighted toward education financing and support for small businesses. Student loan debt stats $1.28 trillion in total U.S. student loan debt 44.2 million Americans with student loan debt Student loan delinquency has a rate of 11.0%
- This is the Trust/Awareness Gap Between General Population and Informed Publics in various forms of technology. You’ll notice the widest gap in blockchain, the system underpinning bitcoin. The Takeaway: People trust the tech they know the best.
- Here, we asked what was most likely to increase respondent’s trust in automated investment advice? You see that transparency was king here, as a clear explanation of recommendations and costs sat at the top of the list.
- There’s a critical breakdown in the financial services industry in all of these trust behaviors. You see the gap (those numbers in the white circles) is widest in the FS industry when it comes to behaviors such as contributing to the greater good effectively representing the interests of all stakeholders. Leadership Effectively Represents Interests of all Stakeholders yields actions surrounding Solving Customer Pain Points Big problem with banks is that they’re run by bankers. They’re experts at wringing every penny out of every dollar. They’re expert on the margin Only 5-20% of global FS companies have anyone on their board knowledgeable about customer experience and FS marketing. Can’t take culture and innovation to next level. Companies need to focus on solving consumers problems Its more important to understand WHY your customers are asking for innovation – what is the problem that needs solving and why is it a problem? – rather than focusing on the next technology you’re going to acquire to beat your competition Develops Innovations with Positive Impact on My Life and World yields actions surrounding Smart Technology Investment Technological advances in applications (cloud computing/rise of mobile) have created companies that make finance cheaper and more accessible to a new generation of customers. We’re at a point where incumbent FS companies are coming to a cross-roads with their fintech brethren. Companies now must be digitally native, controllable by the push of a button on your smartphone half a world away. Ex. Goldman Sachs has made investments in the payments, big data, blockchain and compliance/regulatory space (all within the last two years) August 2015 – Goldman gives away trading technology to clients through open-source software April 2016 – GS starts GS Bank - “Going from Wall Street to Main Street” October 2016 – GS pushes forward “Marcus,” their new online lending platform targeted to small businesses Contributes to the greater good yields actions surrounding Social Purpose As financial institutions continue to transform how they operate, the need to shape consumer engagement and help push smart public policy becomes even more necessary Protects consumer data yields actions surrounding Data Security & Privacy Financial institutions need to be able to navigate this increasingly complex environment Companies need to be proactive about safeguards they have in place while being fully transparent about the collection, use and protection of corporate and personal data